Lakewood Fashions Must Decide How Many Lots of Assorted Ski

question 53

Essay

Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores.Information on pricing,sales,and inventory costs has led to the following payoff table,in thousands. $\begin{array}{c|ccc}&&\underline{Demand}\\\text { Order Size } & \text { Low } & {\text { Medium }} & \text { High } \\\hline 1 \text { lot } & 12 & 15 & 15 \\2 \text { lots } & 9 & 25 & 35 \\3 \text { lots } & 6 & 35 & 60\end{array}$
a.What decision should be made by the optimist?
b.What decision should be made by the conservative?
c.What decision should be made using minimax regret?

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Definitions:

Pyrogens

Substances, often produced by bacteria, that induce fever by affecting the body's temperature regulation in the hypothalamus.

Fever Production

The body's response to infection or illness, involving an increase in body temperature to help fight pathogens.

Capillary Permeability

The ability of substances to pass through the tiny blood vessels known as capillaries, either entering or exiting the bloodstream.

Chemotaxis

Attraction of living protoplasm (cells) to chemical stimuli.